| Thu 31 May 2001, 0:00 | | Imr Investments Limited - Final Results |
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IMR INVESTMENTS LIMITED
Reg No. 1998/017351/06
(formerly The Appleton Group Limited)
FINAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2001
GROUP INCOME STATEMENT
Audited Audited
year period from
ended incorporation
28 Feb 2001 to 29 Feb 2000
R'000 R'000
Gross revenue 78 336 173 938
(Loss)/income before interest
and taxation (11 979) 70 607
- from continuing operations (13 437) 70 607
- from discontinuing operations 1 458 -
Net interest received 3 204 5 242
Exceptional items 9 786 -
Loss from associates (68) -
Income before taxation 943 75 849
Taxation (4 724) (20 744)
(Loss)/income after taxation (3 781) 55 105
Attributable to outside shareholders (232) -
Net attributable (loss)/earnings (4 013) 55 105
Number of shares in issue ('000) 32 580 43 723
Weighted average no. of
shares in issue ('000) 42 147 49 566
Headline (loss)/earnings
per share (cents) (32,7) 111,2
(Loss)/earnings per share (cents) (9,5) 111,2
Fully diluted (loss)/earnings
per share (cents) (9,5) 102,3
NAV per share (cents) 49,0 290,3
RECONCILIATION OF HEADLINE (LOSS)/EARNINGS
Audited Audited
year period from
ended incorporation
28 Feb 2001 to 29 Feb 2000
R'000 R'000
Headline (loss)/earnings (13 799) 55 105
Exceptional items 9 786 -
Net profit on sale of
operations to Appleton Limited and
settlement with the Spirit Group 13 054 -
Loss on sale of associate (3 268) -
Net attributable (loss)/earnings (4 013) 55 105
GROUP BALANCE SHEET
Audited Audited
as at as at
28 Feb 2001 29 Feb 2000
CAPITAL EMPLOYED R'000 R'000
Ordinary shareholders' funds 15 955 126 904
Outside shareholders' interests - 1 200
Long-term liabilities - 12 386
Liabilities owing to vendors of
businesses acquired - 22 300
Deferred taxation (191) 284
15 764 163 074
EMPLOYMENT OF CAPITAL
Fixed assets - 21 672
Loans receivable - 10 554
Financial investments - 116 252
Net current assets 15 764 14 596
Current assets 45 182 77 102
Current liabilities (29 418) (62 506)
15 764 163 074
CONDENSED STATEMENT OF CHANGES IN ORDINARY SHAREHOLDERS' FUNDS
Audited for the year ended February 2001
Share Non- Retained
capital and distributable income
premium reserves
R'000 R'000 R'000
Balance at beginning of
year as restated 58 347 24 501 44 056
Increase in share capital 18 814
Increase in treasury stock held
by subsidiary company (18 192)
Net attributable loss for the year (4 013)
Unbundling
- Dividend in specie (45 233)
- Capital reduction (53 767)
Shareholders for dividend (1 711)
Reversal of deferred tax asset arising
on acquisition of business trademark (7 501)
Foreign currency translation reserve 654
Net release to retained income (3 903) 3 903
Balance at end of year 5 202 13 751 (2 998)
COMMENTS
REVIEW OF OPERATIONS
IMR Investments Limited ("IMR") disposed of its local and international
businesses, excluding its proprietary investments, to Appleton Limited
("Appleton") (formerly U-Trade Limited) with effect from 1 July 2000, for
R99 million. The purchase consideration was settled by the issue to IMR of
792 million Appleton shares at an issue price of 12,5 cents per share.
Following shareholder and regulatory approval, IMR unbundled these shares to
its shareholders who received 22.237434 Appleton shares for every IMR share
held.
IMR retained its portfolio of JSE listed shares and cash resources.
At year end the Group's net asset value ('NAV') comprised:
- a portfolio of listed and unlisted shares with a value of R19,2 million;
- cash resources of R22,8 million;
- other current assets of R3,1 million;
- current liabilities of R29,4 million.
The NAV of IMR has declined during the period as a result of the
abovementioned sale and the subsequent unbundling of Appleton shares and the
satisfactory settlement of disputes with the Spirit Group. These
transactions were approved by shareholders on 21 December 2000. The
Directors are of the opinion that certain tax effects arising from the
aforementioned settlement are of a capital nature, however this has not been
finalised with SARS and accordingly a tax provision of approximately R4
million has been raised.
Certain litigation is pending against IMR which in the opinion of legal
council is defendable. Other potential claims are adequately covered by
provisions and counter claims.
Prior year information has been restated which resulted in an increase in
ordinary shareholders' funds of R4,8 million at 29 February 2000.
PROSPECTS
It is the intention of the Board to pursue a strategy for the Company that
will result in the maximum benefit and extraction of value for shareholders
including the utilisation of estimated future tax losses of approximately
R6,5 million. A number of strategies have been presented to the Board for
their consideration. No formal proposal has, as yet, been concluded.
Shareholders will be informed of details as they become available. In the
interim, the Board will continue to realise equity investments when
appropriate and manage the cash resources of the Company prudently.
No dividend has been declared.
On behalf of the Board
J R Reid
Secretary
Cape Town
30 May 2001
Directors: C Hultzer (Chairman)*, D B Sneddon, W Rosenberg,
S D Shane, A H Diem, S M Campbell
* non-executive
Group Secretary: J R Reid
Registered office: T.A.G House, Alphen Park, Constantia Road, Constantia,
7806
Transfer Secretaries: Mercantile Registrars Ltd, 10th Floor,
11 Diagonal Street, Johannesburg, 2001
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